"He who marches out of step hears another drum." ~ Ken Kesey
Shopping for best deal is going to get alot more common and simply banging out really good prints isn't going to matter as much as price.
It's funny when I get customers that come to me asking for thier artwork files so they can use the cheaper guy, "whoops, sorry I'm on a new computer, I only have your screens and no you can't have those". Maybe I need to add some neons to my shop and have a free t-shirt toss... One of my competitors holds an annual music fest in which many of the bands I have printed for play. I'll loose a few jobs and then they'll come back when they screw something up.
Could it possibly be the other guys are dealing with lower overhead and can therefor produce product at better prices. We do it everyday and its not lowballing. I call it smart business. Pricing should be based on your overhead and what it takes to make money, if you lose a bid and you priced it based on your required margin to make money then you did your best. i'm just sayin..